Bitcoin (BTC), experienced a double-digit decline in its hashrate (the computational strength of the network’s computations) within a single day after the crackdown in China’s vital mining region. This was in addition to its June peak. However, Ethereum (ETH), as well as several proof-of-work projects (PoW), shared similar beliefs.
reported that Xinjiang had ordered many crypto mining farms to close down on June 9. However, miners were left with Sichuan province’s super-popular Sichuan province. This is especially because many people migrate to the area during rainy season. has reported that this region is also ‘hit. This was immediately reflected in Bitcoin’s average hashrate which dropped 19% between June 18th and June 20.
The 7-day simple moving mean values showed that the hashrate dropped by over 4% during the same period. It dropped 18% from its June 7th high. It’s also down 32% compared to May 14’s network record.
Other PoW projects also saw significant drops in hashrates after June peaking.
Ethereum saw a smaller drop than Bitcoin’s June high of 6%. Its hashrate fell almost 9% compared to its ATH in May.
Litecoin saw a double digit decline in its hashrate, dropping 13% from the peak this past month. However, its ATH was reached in July 2019.
DOGE ‘s hahsrate has dropped by more than 10% from the June peak, which was seen less than 10 working days ago. Dogecoin’s ATH is still in July 2019, just like Litecoin.
Bitcoin Cash experienced a huge drop: it dropped over 27% between June 1st and June 20th. Its ATH was last recorded in November 2018.
Zcash (ZEC) saw its hashrate drop 13% from June 1, continuing its decline from the peak reached in April, and falling 35% from that point.
Ethereum Classic dropped 6% in the first week of June. However, after jumping in May and hitting its ATH May 13, the hashrate has remained fairly steady, falling almost 10% overall.
Monero XMR had the smallest hashrate decline on this list in June, less than 0.5% from June 2. Monero, like Ethereum Classic, jumped at April’s end, reached its ATH May 11th, and has remained steady ever since, losing less than 1%.
These conditions can cause a negative market reaction in the short-term. But, long-term they can be positive. As miners move to new locations, they’ll likely choose areas with easy access to low-cost energy sources. The network will be more stable and hashrate will begin to recover. In an email comment Ulrik K.Lykke, Executive Director of Crypto/Digital Assets Fund ARK36, stated that mining will become decentralized and more dependent on clean, renewable energy sources.
According to the South Morning Post, prices for graphics cards used to mine PoW coins (except BTC) fell by up to two-thirds in the midst of this crackdown.